Unitholders of Sentry Select Diversified Income Fund (TSX:SDT.UN) have voted to approve the restructuring of the fund, Sentry Select Capital Inc. said Friday.

Unitholders approved the proposal to convert the fund from a closed-end investment fund to an open-end mutual fund.

They also approved the proposal to amend the management agreement between the manager and the fund by reducing the management fee and eliminating the fee payable to the manager upon termination of the management agreement, in settlement of indebtedness of $23,945,138 under the promissory notes of Sentry Select Capital Corp. held by the Fund.

Unitholders also voted to amend the investment objectives of the fund, and have Sentry Select become the successor trustee of the fund upon the resignation of the Computershare Trust Co. of Canada, the current trustee of the fund.

On June 23, Sentry Select announced an amendment to the restructuring. Under the amendment the annual management fee payable would be reduced to 0.75% until Dec. 31, 2010, with the annual management fee payable increasing in line with the declining redemption fee.

As schedule of the fee changes is available by clicking on the link below.

The fund is expected to convert into an open-end mutual fund on August 14, and the fund[s units are expected to be de-listed from trading on the Toronto Stock Exchange on August 4.

Unitholders will have an initial option, prior to effecting the conversion, to redeem their units at NAV per unit as of July 31, subject to a 5% redemption fee, Sentry Select says.

IE